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Repsol sells Shell LNG assets for $8.23 billion

Published on Feb 27, 2013 6:20 AM
The newly inaugurated Melchorita natural gas liquefaction plant of Spanish company Repsol, 170 km south of Lima. The Spanish oil group Repsol said on Feb26, 2013 it sold part of its business of liquefied natural gas (LNG) to the Shell Group for US$6.653 million. -- PHOTO: AFP

MADRID (AFP) - Spanish energy group Repsol said on Tuesday it had sold its liquefied natural gas (LNG) assets to Shell for US$6.65 billion (S$8.23 billion) in cash and debt.

"The agreement, which generates a US$3.5 billion pre-tax capital gain for Repsol, includes the assets in Trinidad & Tobago (Atlantic LNG), Peru LNG and Bahia de Bizkaia Electricidad (BBE) as well as the LNG sale contracts and time charters," the company said in a statement.

Repsol said it is keeping its LNG assets in Canada, and signed a supply agreement with Shell, as the current low gas prices in North America would not allow it to earn a return on the Canaport regasification terminal.

Repsol said the transaction, which it expects to close before the end of the year, will mean that it surpasses the 4.5 billion euros in divestments outlined in the 2012-2016 strategic plan.

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